Because our client is a day-rate contractor, we needed a lender who would take his day rate into account when calculating how much he could afford to borrow. There was also a potential issue in that he had recently taken a break from work in order to re-train in order to earn a higher daily rate.
Numerous lenders were sourced but this dal required specific criteria and took a lot of research to identify a suitable lender. Most lenders require at least one year’s continuous track record of employment so our client’s break to re-train caused some issues, and we needed a lender who we could discuss the case with in order to explain the situation.
Key requirements: –
• A lender comfortable with our client being a professional day-rate contractor, who was prepared to base the client’s income on that day rate, rather than salary and dividends, when calculating how much they could borrow. • A lender happy to increase the size of the mortgage to cover the cost of the home improvements. • A lender offering a competitive fixed-rate mortgage.
After sourcing the mortgage market, we identified a lender who would agree to our client borrowing the required amount of £622,000. The application process: To support the mortgage application, the day-rate contractor supplied us with evidence of his fixed-term contract and proof of identity. We were delighted to inform our client that the lender had issued a formal mortgage offer for the full amount requested at a competitive fixed rate.
Property value: £850,000 Loan amount: £595,000 LTV: 70% Rate: 1.89% fixed for two years Lender product fee: £1,495 Monthly payment: £2,346